Kibo Mining has received the first fixed payment from SEPCO III, a China-based EPC contractor, under a new agreement between the two companies to develop the Mbeya coal-to-power project (MCPP) in Tanzania.
Under the new agreement, SEPCO III will refund development costs incurred by Kibo in exchange for being appointed sole bidder for the EPC contract for the Mbeya project.
The mining company received the first refund payment of US$1.8 million. The companies must now agree the final refund amount and the deadline for payment by 22 September.
“SEPCO III’s prompt and diligent performance with regard to the first payment due under the agreement demonstrates great enthusiasm for and belief in the MCPP, as well as in the company,“ said Louis Coetzee, CEO of Kibo.
“We believe that all the remaining conditions of the agreement will be met with the same due diligence and that the Kibo/SEPCO III relationship will play a pivotal role in the further development and ultimate delivery of the MCPP”
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/05092016/kibo-receives-first-payment-from-sepco-2016-2369/